Kalkaska resident Virginia Thomas: “When we retired, we thought we had health care until we died.” (photo by Ted Roelofs) KALKASKA -Seated at her kitchen table, Virginia Thomas confessed she is less trusting than she used to be. Thomas, 75, worked nearly 30 years for the rural northern Michigan Village of Kalkaska, serving as everything […]
Small towns, big problems
How retirement debt swallowed our towns
Back in the 1950s, when Detroit’s automobile industry ruled, few gave much thought to the long-term price of fringe benefits like pensions or retiree health care. The post-World War II auto boom was a model of modern manufacturing, creating jobs from Detroit and its suburbs to cities like Flint and Saginaw. Factories hummed around the […]
Debt-ridden Detroit has close company
A decade of recession hit one region – southeast Michigan – harder than anywhere else. So perhaps it’s no surprise unfunded pension and retiree health-care debt is concentrated there as well, in a long list of cities that extends well beyond Detroit or Flint. Southeast Michigan is responsible for a staggering 86 percent of the […]
Cities must face legacy debts, or risk survival
I think it was around six years ago when I first heard faint rumblings about a coming financial tidal wave that was going to break over our cities, townships and villages, bringing with it the risk of a new civil war between retirees and taxpayers. The phrases were dire – “Enormous unfunded liabilities.” “Retiree pensions […]
Detroit's entrepreneurs aren't all young and white
OPEN FOR BUSINESS: Chandra Moore is one African-American entrepreneur taking advantage of Detroit’s welcoming climate for new business. (Courtesy photo) Gerald Watson plans on hosting a competition he’s calling Detroit’s Next Executive Chef at Mo’ Betta Blues, his new restaurant and club. The competition, modeled after similar shows on cable television, is part of the […]
Be happy for holidays – no matter which is yours
MERRY CHRISMUKKAH! This vintage menorah shaped like a Christmas tree is just right for an interfaith home. (Courtesy photo) According to my parents, I’m the daughter of a Reform Jewish mom from Brooklyn and a nondenominational Christian dad from Battle Creek. We had menorahs and a Christmas tree in our home. According to Beliefnet’s interesting […]
Retirees sweat as courts weigh cuts to pension and health care
It’s a battle cry that began in Detroit and is spreading to other Michigan cities: “Don’t touch my pension.” To that, many of the state’s retired municipal employees are adding another caveat: “And leave my medical insurance alone, too.” With Detroit in bankruptcy court, employees and retirees of other Michigan local governments are watching warily, […]
Economy falters, with no easy answers for Saginaw
Saginaw resident Linda Williams is frustrated that the city no longer mows the vacant lot next to her home. (photo by Ted Roelofs) SAGINAW – Standing by the weed-choked vacant lot next to her home, Saginaw resident Linda Williams had a simple question. “Couldn’t they cut it at least one time?” she asked. “I don’t […]
Searchable database: Legacy costs in your community
Legacy costs are commitments made in the past that will be paid by future generations. The two biggest forms of legacy costs for local governments in Michigan are pensions and health care insurance for retired public workers. Michigan has nearly 1,800 units of local government. Nearly 300 have some level of legacy costs. Two-thirds of […]
As Kalamazoo stalled, its neighbor curbed retiree health-care costs
City Manager Maurice Evans: “In hindsight, I would say city officials were looking at long-term expenses.” (photo by Ted Roelofs) KALAMAZOO/PORTAGE – A quick drive through Kalamazoo and its bordering neighbor to the south, Portage, reveals some obvious differences. Others are less so. Kalamazoo, older and more ethnically diverse, has its share of historic downtown […]
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